An act to amend the Insurance Law and the Navigation Law, in relation to
requiring certain policies of insurance for public vessels which carry passengers.
PIANY supports legislation that requires public vessels operating in New York state
to carry marine protection and indemnity insurance.
LEGISLATIVE
REPRESENTATIVE
Allison Lee
DIRECTOR OF
GOVERNMENT/
INDUSTRY AFFAIRS
Matthew F. Guilbault, Esq.
EXECUTIVE
DIRECTOR
Diane Fowler
Memorandum in support of: S.5203-A by Sen. Breslin
A.4697-A by M. of A. Schimminger
Background: This legislation amends Section 50 of the Navigation Law to state no
certificate of inspection or temporary permit shall be issued unless the owner of a
public vessel produces proof of insurance to the inspector. The bill also clarifies
Subsection (a) of Section 2105 of the Insurance Law regarding the authority of excessline brokers to provide marine liability insurance. Finally, the bill requires owners of
public vessels certified to carry passengers which operate on the navigable waters of
the state, except vessels which navigate on waters over which the United States exercises active control, to obtain marine protection and indemnity insurance as defined in
Insurance Law Section 1113(a)(21).
Justification: PIANY supports this legislation on behalf of its members and the
insurance-buying public and firmly believes that enactment of this new requirement
will have a direct benefit to the people of the state of New York. An owner or operator
of a public vessel should be financially able to ensure that his or her patrons are
adequately protected in times of loss. The bill also allows for owners of public vessels
to be self-insured and will enhance the safety and security of the public who utilize
commercial watercraft for recreational and business purposes and should, therefore,
be approved.
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